“We were satisfied with our adjusted EPS results in the second quarter,”
said Josef von Rickenbach, Chairman and Chief Executive Officer of
PAREXEL International. “Revenue growth in the quarter was relatively
modest mainly due to the lingering impact of cancellations in prior
periods, continuing slower backlog conversion due to increasing clinical
trial complexity, and revenue delays from recent awards. As we expect
recent strong new business awards to contribute less near-term revenue
than we had anticipated, we are lowering our forecast for Fiscal Year
2017 revenue and diluted EPS.

“We are encouraged by the long-term revenue opportunity from our
continuing strong new business awards. Cancellations in the second
quarter returned to the normal range from the elevated levels of the
first quarter. Our strong new business performance continues to drive
solid backlog growth.

“We continue to adapt our organization to our revenue base in order to
maximize our operational efficiency,” Mr. von Rickenbach concluded. “We
announced a restructuring program in January. With the help of this and
other initiatives, we anticipate significant improvement in adjusted
operating margin in the fourth quarter of Fiscal Year 2017 and beyond.”

Second Quarter Fiscal Year 2017 Results

For the three months ended December 31, 2016, PAREXEL’s service revenue
increased 3.1% to $534.4 million, compared with $518.5 million in the
prior year period. Income from operations as reported under Generally
Accepted Accounting Principles (GAAP) totaled $60.0 million, or 11.2% of
service revenue, in the second quarter of Fiscal Year 2017, as compared
with $54.6 million, or 10.5% of service revenue, in the comparable
quarter of the prior year. GAAP net income for the quarter totaled $21.8
million, or $0.41 per diluted share, compared with $39.4 million, or
$0.73 per diluted share, for the quarter ended December 31, 2015.

The financial results in the current and prior year period each included
items outside of the Company’s normal operations, as detailed in the
reconciliation included at the end of this press release. PAREXEL’s
service revenue of $534.4 million in the second quarter represented
growth of 3.2% on a constant currency basis. Excluding revenue of
approximately $37.2 million arising from the acquisitions of Health
Advances and ExecuPharm, revenue decreased by 4.0% on a constant
currency basis, compared to the prior year. Adjusted operating income in
the second quarter of Fiscal Year 2017 was $64.7 million, or 12.1% of
service revenue. Adjusted operating income in the second quarter of
Fiscal Year 2016 was $68.4 million, or 13.2% of service revenue.
Adjusted net income was $45.0 million, or $0.85 per diluted share, in
the quarter ended December 31, 2016, and was $48.7 million, or $0.90 per
diluted share, in the quarter ended December 31, 2015.

On a segment basis, service revenue for the second quarter of Fiscal
Year 2017 was $408.9 million in Clinical Research Services (CRS), $54.6
million in PAREXEL Consulting (PC), and $70.9 million in PAREXEL
Informatics (PI).

Six Month Fiscal Year 2017 Results

For the six months ended December 31, 2016, service revenue was $1,031.1
million versus $1,030.6 million in the prior year period, essentially
unchanged. GAAP operating income for the current six-month period was
$113.3 million, or 11.0% of service revenue, compared with $90.1
million, or 8.7% of service revenue, in the prior year period. GAAP net
income for the six months ended December 31, 2016 was $59.6 million, or
$1.12 per diluted share, compared with $64.3 million, or $1.17 per
diluted share, in the prior year period.

The financial results of the first six months in the current and prior
year period each included items outside of the Company’s normal
operations, as detailed in the reconciliation included at the end of
this press release. PAREXEL’s service revenue was essentially unchanged
on a constant currency basis at 1,031.1 million for the six months ended
on December 31, 2016 compared to the prior year period. Excluding
revenue of approximately $46.2 million from the acquisitions of Health
Advances and ExecuPharm, revenue decreased by 4.5% on a constant
currency basis, compared to the prior year. Adjusted operating income
was $119.0 million, or 11.5% of service revenue for the six months ended
December 31, 2016, compared with $123.7 million, or 12.0% of service
revenue, for the six months ended on December 31, 2015. Adjusted net
income for the six months ended December 31, 2016 was $83.3 million, or
$1.57 per diluted share, compared with $87.7 million, or $1.60 per
diluted share, in the comparable prior-year period.

New Business and Backlog

Backlog as of December 31, 2016 was $5.94 billion, an increase of about
$462 million year over year. The reported backlog included gross new
business wins in the second quarter of $971 million, cancellations of
$266 million, and a negative impact from foreign currency exchange of
$52 million. The net book-to-bill ratio was 1.32 in the quarter.

Forward-Looking Guidance

The Company issued forward-looking guidance for the third quarter of
Fiscal Year 2017 (ending March 31, 2017) and updated its guidance for
revenue and EPS for Fiscal Year 2017, as detailed in the chart below.
The guidance takes into account a number of factors, including recent
foreign currency exchange rates, tax rates, the acquisitions of
ExecuPharm and The Medical Affairs Company, the accelerated share
repurchase program, the new restructuring program, and the Company’s
updated overall outlook. The impact of purchase accounting related to
The Medical Affairs Company has not been included.

The Company’s guidance is:

Guidance Issued 2/1/2017

Guidance Issued 10/26/2016

Q3 FY 2017 Revenue

$524 - $538 million

NA

Q3 FY 2017 GAAP EPS

$0.28 - $0.42

NA

Q3 FY 2017 Non-GAAP EPS*

$0.66 - $0.80

NA

FY 2017 Revenue

$2.08 - $2.12 billion

$2.15 - $2.19 billion

FY 2017 GAAP EPS

$2.30 - $2.58

$3.55 - $3.89

FY 2017 Non-GAAP EPS*

$3.15 - $3.43

$3.71 - $4.05

*Adjusted numbers excludes various items, as detailed in a table
contained within this release.

Additional Information

The financial results in this release are preliminary and unaudited.

In addition to the financial measures prepared in accordance with GAAP,
the Company uses certain non-GAAP financial measures. The Company
believes that presenting the non-GAAP financial measures contained in
this press release assists investors and others in gaining a better
understanding of its core operating results and future prospects,
especially when comparing such results to previous periods or forecasted
guidance, because such measures exclude items that are outside of the
Company’s normal operations and/or, in certain cases, are difficult to
forecast accurately for future periods. Management uses non-GAAP
financial measures, in addition to the measures prepared in accordance
with GAAP, as the basis for measuring the Company’s core operating
performance and comparing such performance to that of prior periods and
to the performance of its competitors for the same reasons stated above.
Such measures are also used by management in its financial and operating
decision-making. Non-GAAP financial measures are not meant to be
considered superior to, nor a substitute for, the Company’s results of
operations prepared in accordance with GAAP. The non-GAAP financial
measures exclude the items detailed in the reconciliation included at
the end of this press release.

A conference call to discuss PAREXEL’s second quarter Fiscal Year 2017
earnings, business, and financial outlook will begin at 10:00 a.m. ET on
Thursday, February 2, 2017 and will be broadcast live over the internet
via webcast. To access the webcast, visit the Investor Section of
PAREXEL’s website at www.investor.parexel.com.
This webcast will continue to be accessible for one year following the
live broadcast. To participate via telephone, dial +1-408-940-3886 and
ask to join PAREXEL’s second quarter Fiscal Year 2017 earnings call.

A presentation of second quarter Fiscal Year 2017 results, as well as
certain trended financial information, may be found on the home page of
the Investors portion of the Company’s website in a document titled “Q2
2017 Earnings Presentation.”

About PAREXEL International

PAREXEL International Corporation is a leading global biopharmaceutical
services company, providing a broad range of expertise-based clinical
research, consulting, medical communications, and technology solutions
and services to the worldwide pharmaceutical, biotechnology and medical
device industries. Committed to providing solutions that expedite
time-to-market and peak-market penetration, PAREXEL has developed
significant expertise across the development and commercialization
continuum, from drug development and regulatory consulting to clinical
pharmacology, clinical trials management, and reimbursement. PAREXEL
Informatics provides advanced technology solutions, including medical
imaging, to facilitate the clinical development process. Headquartered
near Boston, Massachusetts, PAREXEL has offices in 85 locations in 51
countries around the world, and had approximately 19,625 employees in
the second quarter. For more information about PAREXEL International
visit www.PAREXEL.com.

PAREXEL and PAREXEL Informatics are trademarks or registered trademarks
of PAREXEL International Corporation or its affiliates.

This release contains “forward-looking” statements regarding future
results and events, including, without limitation, statements regarding
expected financial results, future growth and customer demand. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed forward-looking statements. Without
limiting the foregoing, the words “believes,” “anticipates,” “plans,”
“expects,” “intends,” “appears,” “estimates,” “projects,” “will,”
“would,” “could,” “should,” “targets,” and similar expressions are also
intended to identify forward-looking statements. The forward-looking
statements in this release involve a number of risks and uncertainties.
The Company’s actual future results may differ materially from the
results discussed in the forward-looking statements contained in this
release. Important factors that might cause such a difference include,
but are not limited to, risks associated with: actual operating
performance; actual expense savings and other operating improvements
resulting from restructurings, the loss, modification, or delay of
contracts which would, among other things, adversely impact the
Company’s recognition of revenue included in backlog; the Company’s
dependence on certain industries and clients; the Company’s ability to
win new business, manage growth and costs, and attract and retain
employees; the Company’s ability to complete the acquisition of The
Medical Affairs Company, LLC, and additional acquisitions, and to
integrate newly acquired businesses including the acquisitions of Health
Advances, LLC and ExecuPharm, Inc., or enter into new lines of business;
the impact on the Company’s business of government regulation of the
drug, medical device and biotechnology industry; consolidation within
the pharmaceutical industry and competition within the biopharmaceutical
services industry; the potential for significant liability to clients
and third parties; the potential adverse impact of health care reform;
and the effects of foreign currency exchange rate fluctuations and other
international economic, political, and other risks. Such factors and
others are discussed more fully in the section entitled “Risk Factors”
of the Company’s Annual Report on Form 10-K and subsequent quarterly
reports on Form 10-Q, as filed with the Securities and Exchange
Commission, which “Risk Factors” discussion is incorporated by reference
in this press release. The Company specifically disclaims any obligation
to update these forward-looking statements in the future. These
forward-looking statements should not be relied upon as representing the
Company’s estimates or views as of any date subsequent to the date of
this press release.